Abnormal Audit Fees And Accuracy Of Earnings Forecast By Securities Analysts

With the continuous development of the capital market,the role of securities analysts in the capital market is becoming more and more important.In the securities market,securities analysts are like the staff consultants of investors who use all kinds of information they can obtain to provide investors with analytical opinions and to ensure that the information and analysis opinions on which they are based are objective and true.reliable.Moreover,most theories that explain the efficiency of the securities market emphasize that securities analysts have obvious advantages over individual investors,both in terms of information acquisition and verification.However,the relevant information is the basis for securities analysts to analyze and provide recommendations,so the quality of information and its credibility are particularly important for securities analysts.Relevant evidence also shows that the quality of earnings information of enterprises is one of the important factors affecting the accuracy of securities analysts' earnings forecasts.At the same time,some studies have shown that abnormal audit fees have a negative impact on the quality of financial reporting information.However,at present,there are few related studies on whether abnormal audit fees have an impact on the accuracy of securities analysts'earnings forecasts.Based on China's actual conditions and institutional environment,this thesis studies the impact of abnormal audit fees on the accuracy of securities analysts' earnings forecasts,and examines whether there is a certain difference in the impact of companies with different property rights.This thesis can be divided into six parts:The first part is introduction.This section mainly elaborates the theoretical significance,practical value and possible innovations of this article.The second part is literature review.This section reviews the research status of domestic and foreign related literature from the aspects of audit fees and its influencing factors,the relationship between abnormal audit fees and earnings quality,and the factors that influence the effectiveness of securities analysts' earnings forecasts.It also summarizes and comments existing literature,Looking forward to the development trend of the research.The third part proposes the theoretical basis and assumptions.This part first introduces the relevant theoretical foundations of this thesis's research,including principal-agent theory,effective market hypothesis,information asymmetry theory and risk-oriented audit theory.Then,based on the relevant theoretical basis,the relationship between the abnormal audit fees,the nature of property rights and the accuracy of the earnings forecast of the securities analysts are analyzed,and then the research hypothesis of this thesis is proposed.The fourth part is the design of research.This section first introduces the process of selecting,collecting,and sorting the sample for this thesis.Then explain the definition and calculation methods of the relevant variables such as abnormal audit fees,earnings quality,and securities analyst earnings forecast accuracy.Finally,the research model of this thesis is introduced,and the expected symbols of the relevant variable coefficients are explained according to the research hypothesis.The fifth part is the empirical analysis.This section first descriptively analyzes the relevant variables of the study sample.Then based on the research hypothesis in this thesis,regression analysis of the samples according to the model respectively provides empirical evidence for the relationship between abnormal audit fees,the nature of property rights,and the accuracy of earnings forecasts by securities analysts.The sixth part is the limitation of research conclusions and policy recommendations.Based on the empirical analysis results,the main conclusions of this paper are summed up,and the limitations of the article are described.This thesis takes the 2012-2016 financial data of the A-share listed companies in China's Shanghai and Shenzhen Stock Exchanges as research samples,and draws the following conclusions through empirical research:(1)In the whole sample,abnormal audit fees are negatively correlated with earnings quality.However,after distinguishing the nature of property rights,the abnormal audit fees in state-owned enterprises are not related to the quality of earnings.The abnormal audit fees in private enterprises are negatively correlated with the quality of earnings.That is,the relationship between abnormal audit fees and earnings quality in the whole sample is mainly caused by private enterprises.(2)In the whole sample,abnormal audit fees and securities analysts' earnings forecasts have a negative correlation.After distinguishing the nature of property rights,the abnormal audit fees in state-owned enterprises are not correlated with the accuracy of earnings forecasts by securities analysts.The abnormal audit fees in private enterprises are negatively correlated with the accuracy of earnings forecasts by securities analysts.The innovation of this thesis is mainly reflected in the novelty of the research perspective and the refinement of the research content:The existing scholars have very few studies on the impact of abnormal audit fees on the earnings forecast accuracy of securities analysts.This thesis examines the relationship between abnormal audit fees and the effectiveness of securities analyst earnings forecasting from the perspective of CPA auditing.The research perspective is relatively new.At the same time,the study of the text combines our country's actual situation and institutional background,and distinguishes the nature of property rights to investigate the relationship between abnormal audit fees and the effectiveness of securities analyst earnings forecasting,and deepens the CPA audit impact analysts,prediction research.This is of great significance for discovering the interaction mechanism of various parties in the capital market,promoting the proper functioning of all parties,and promoting the healthy and orderly development of the capital market.